Cloud computing adoption and utilization drivers and inhibitors - case studies from large financial institutions in Australia

With the advancement of internet, telecommunication and mobile technologies, new digitally-driven business models have emerged which are disrupting traditional business models and are having a profound impact on entire industries around the world. Enterprises today are facing unprecedented challenges and are required to change their approach to provisioning and consuming technology services. Cloud computing is a key enabler for this change. Being acclaimed as a disruptive innovation, cloud computing has contributed to the success of start-ups and industry disrupters, since it allows them to provide technology services at speed and scale without the commitment and investment of costly technology infrastructure. However, despite general acceptance by organizations worldwide, cloud computing adoption by large enterprises, particularly those from highly regulated industries such as financial services, has been slow and its utilization has so far been in very limited areas. It is important to understand the factors which impact these large organizations’ decision for adopting and utilizing cloud computing, so that actions can be taken to facilitate the adoption and utilization processes. The objective of this study is to gain deep understanding of drivers and challenges associated with cloud computing adoption and utilization by large financial institutions in Australia. Through multiple case study grounded on the TOE framework, involving a major bank and a large insurance company in Australia, this study reveals a common set of drivers and challenges, which will be useful for guiding cloud adoption and utilization for companies in similar situations. It also recommends actions for overcoming challenges identified through this study.